Reassessing the Case for Central Clearing of Bonds and Repos in Australia: Consultation
In July 2024, the Council of Financial Regulators (CFR) released a consultation paper:
There have been considerable changes in the size and structure of the Australian bond and repo markets in recent years. Recent analysis by Reserve Bank of Australia (RBA) staff indicates that the potential benefits of central clearing in these markets has increased, and that the case for central clearing may be stronger than previously assessed.
As such, the CFR is seeking feedback from stakeholders on the magnitude of any costs and benefits that may accrue from the introduction of a central counterparty in the Australian bond and repo markets. Feedback is also sought from stakeholders to understand the circumstances under which a bond and repo CCP could be operated safely and efficiently by an overseas operator and what additional protections may be required for Australian bond and repo markets. The CFR is not considering any other policy proposals as part of this consultation, such as the introduction of a clearing mandate.
Written submissions to the consultation paper close on 4 September 2024.
For further details, please see the CFR consultation paper: